ODA Loans

Terms and Conditions of Japanese ODA Loans

Terms and Conditions of Japanese ODA Loans (Effective from April 1, 2014)

(PDF Version: 78KB)

Category GNI Per Capita (2012) Terms Fixed/
Variable
Standard/
Option
Interest Rate (%) Repayment Period (Year) Grace Period (Year) Conditions for Procurement
Least Developed Countries Low-Income
Countries *
  0.01 40 10 Untied
  General
Terms
Fixed Standard 0.70 30 10
Option1 0.65 25 7
Option2 0.60 20 6
Option3 0.55 15 5
Preferential
Terms **
Standard 0.01 40 10
Option1 0.01 30 10
Option2 0.01 20 6
Low-Income
Countries
-US$ 1,035 General
Terms
Fixed Standard 1.20 30 10 Untied
Option1 0.90 25 7
Option2 0.75 20 6
Option3 0.65 15 5
Preferential
Terms **
Standard 0.25 40 10
Option1 0.20 30 10
Option2 0.15 20 6
Option3 0.10 15 5
STEP *** Standard 0.10 40 10 Tied
Lower-
Middle-Income
Countries
 US$ 1,036-
US$ 1,965
General
Terms
Fixed Standard 1.40 30 10 Untied
Option1 0.80 20 6
Option2 0.70 15 5
Variable **** Standard JPY LIBOR-10bp 30 10
Option1 JPY LIBOR-30bp 20 6
Option2 JPY LIBOR-12bp 15 5
Preferential
Terms **
Fixed Standard 0.30 40 10
Option1 0.25 30 10
Option2 0.20 20 6
Option3 0.15 15 5
Variable **** Standard JPY LIBOR-133bp 40 10
Option1 JPY LIBOR-123bp 30 10
Option2 JPY LIBOR-89bp 20 6
Option3 JPY LIBOR-66bp 15 5
STEP *** Fixed Standard 0.10 40 10 Tied
Middle-Income
Countries
 US$ 1,966-
US$ 4,085
General
Terms
Fixed Standard 1.40 25 7 Untied
Option1 0.95 20 6
Option2 0.80 15 5
Variable ****  Standard JPY LIBOR+9bp 25 7
Option1 JPY LIBOR-15bp 20 6
Option2 JPY LIBOR-2bp 15 5
Preferential
Terms **
Fixed Standard 0.30 40 10
Option1 0.25 30 10
Option2 0.20 20 6
Option3 0.15 15 5
Variable **** Standard JPY LIBOR-133bp 40 10
Option1 JPY LIBOR-123bp 30 10
Option2 JPY LIBOR-89bp 20 6
Option3 JPY LIBOR-66bp 15 5
STEP *** Fixed Standard 0.10 40 10 Tied
Upper-
Middle-Income
Countries
 US$ 4,086-
US$ 7,115
General
Terms
Variable ****  Standard JPY LIBOR+38bp 25 7 Untied
Option1 JPY LIBOR+49bp 20 6
Option2 JPY LIBOR+67bp 15 5
Fixed Standard 1.70 25 7
Option1 1.60 20 6
Option2 1.50 15 5
Preferential
Terms **
Variable **** Standard JPY LIBOR-103bp 40 10
Option1 JPY LIBOR-98bp 30 10
Option2 JPY LIBOR-69bp 20 6
Option3 JPY LIBOR-52bp 15 5
Fixed Standard 0.60 40 10
Option1 0.50 30 10
Option2 0.40 20 6
Option3 0.30 15 5
Uppermost-
Middle-Income
Countries
US$ 7,116-
US$12,615
General
Terms
Variable **** Standard JPY LIBOR+48bp 25 7 Untied
Option1 JPY LIBOR+54bp 20 6
Option2 JPY LIBOR+72bp 15 5
Preferential
Terms **
Standard JPY LIBOR-89bp 30 10
Option1 JPY LIBOR-65bp 20 6
Option2 JPY LIBOR-47bp 15 5
Consulting Services For consulting services, the interest rate will be minimal (0.01%) and the repayment, grace periods and conditions for procurement will be the same as those for main components.
Options for
Program Type Japanese ODA Loans
In case of co-financing, it is possible to apply the same repayment terms as co-financer's lending while maintaining the concessionality of Yen loans.

* For Low-Income LDCs, the term and condition of 0.01% interest rate and 40-year repayment period including 10-year grace period are applied, irrespective of sectors and fields.

** Preferential Terms are applied for the following sectors and fields:
(i) Problems and Issues on Global Environmental and Climate Change
(ii) Health and Medical Care and Services
(iii) Disaster Prevention and Reduction
(iv) Human Resource Development

*** Special Terms for Economic Partnership (STEP) is extended to the projects for which Japanese technologies and know-how are substantially utilized, based on the recipient countries' request to utilize and transfer excellent technologies of Japan.

**** Although the base rate of Variable Loan is the value of the 6-month Japanese Yen LIBOR, the spread shall be fixed.The actual value of interest rate will be capped so that the grant element over the life of the loan is at least 25%, and if the actual value of interest rate is lower than 0.1%, the interest shall be 0.1%.

***** Irrespective of the country category, the term and condition of 0.01% interest rate and 40-year repayment period including 10-year grace period are applied to projects assisting recoveries from disasters, including Stand-by Emergency Credit for Urgent Recovery (SECURE). For Stand-by Emergency Credit for Urgent Recovery (SECURE), the term and condition of 20-year repayment period including 6-year grace period, or 15-year repayment period including 5-year grace period are also available, in order to apply Currency Conversion Option.

  • The concessionality level of optional terms does not exceed that of standard terms.
  • Under the EPSA initiative, the loan for projects co-financed with the AfDB are extended using "Preferential Terms," determined for each income category; in the case for Low-Income LDCs, the term and condition of 0.01% interest rate and 40-year repayment period including 10-year grace period are applied.
  • A two-step loan extended to the AfDB to cover its sub-loans to private enterprises under EPSA is extended using the term and condition of 0.55% interest rate and 40-year repayment period including 10-year grace period.
  • For countries complying with ongoing IMF-supported programs or receiving grants from IDA, it is possible to modify the terms and conditions of the ODA Loans so as to meet the IMF's concessionality criteria.
  • For the countries of which GNI per capita level exceeds that of Upper-Middle-Income Countries, only LIBOR-based term is applied.
    For Upper-Middle-Income Countries, LIBOR-based term is applied in principle, although General Terms or Preferential Terms are also available.
    For Lower-Middle-Income Countries and Middle-Income Countries, General Terms, Preferential Terms or STEP are applied in principle, although LIBOR-based term is also available.
  • Major Economics Classified by Income Category
  • Product note of Japanese ODA Loans (PDF/1.23MB)

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